Age Discrimination and Retirement

Updated July 2025

Legal Guidance on Retirement and the Equality Act 2010

Since the abolition of the Default Retirement Age (DRA) in 2011, UK employers can no longer compel employees to retire at a fixed age unless they can justify it objectively under the Equality Act 2010. Forcing retirement without legal justification could expose an employer to claims for both age discrimination and unfair dismissal.

Can Employers Still Set a Retirement Age?

Yes—but only under strict legal conditions. Employers must either:

• Avoid setting a retirement age entirely and manage underperformance using standard dismissal procedures

• OR implement a justifiable retirement age, known as an Employer Justified Retirement Age (EJRA)

To be legally valid, an EJRA must be a proportionate means of achieving a legitimate aim. This is a high legal threshold, and employers considering this route should seek specialist employment law advice before proceeding.

When Is an EJRA Justified?

An EJRA is most commonly upheld in roles where retirement at a certain age is essential for health and safety, such as:

• Airline pilots

• Firefighters

• Emergency services personnel

Employers must demonstrate, with evidence—not assumptions, that the set retirement age is necessary and that no less discriminatory alternative would achieve the same result. Additionally, they must follow a fair and transparent process, including:

• Providing employees with reasonable notice of intended retirement

• Considering requests to work beyond the EJRA on a case-by-case basis

• Applying retirement procedures consistently across the workforce

Voluntary Retirement Rights for Older Employees

Employees can still choose to retire voluntarily at any time and access their occupational pension in line with scheme rules. However:

• If formal notice to retire has been given, employers are not legally required to accept a change of mind

• If no formal notice has been issued, employees may withdraw their retirement plans without consequence

Performance Management and Age Discrimination

Managing poor performance among older workers requires caution to avoid discrimination. Employers must:

• Use fair performance management procedures applied consistently across all age groups

• Ensure any dismissal is for a potentially fair reason under the Employment Rights Act 1996

• Consider whether the employee’s condition meets the definition of a disability under the Equality Act, triggering a duty to make reasonable adjustments

Failure to follow correct procedures could result in claims for unfair dismissal or disability discrimination.

Workplace Benefits and State Pension Age

Certain group risk insured benefits (e.g. life cover, income protection) are exempt from the age discrimination provisions in the Equality Act. Employers may lawfully:

• Cease offering these benefits to employees once they reach State Pension Age

• Refuse to auto-enrol employees over State Pension Age under pension auto-enrolment rules

The threshold for these exemptions will rise in line with State Pension Age increases.

Business Planning and Retirement Discussions

While the removal of the DRA has provided employees with greater retirement flexibility, it has also presented challenges for employers in workforce planning.

The Advisory, Conciliation and Arbitration Service (Acas) offers valuable guidance on retirement conversations, suggesting frameworks for discussing future plans with older employees without breaching equality laws.

Expert Legal Advice on Age Discrimination and Retirement

At Willett & Co Solicitors, we provide tailored advice on:

• Complying with the Equality Act 2010

• Implementing or challenging an Employer Justified Retirement Age (EJRA)

• Handling performance management and dismissals lawfully

• Protecting your business against age discrimination claims

📞 Contact our Employment Law team today for expert guidance on retirement law, age discrimination in the workplace, and managing older employees in compliance with UK legislation.